Women Cancer Victims Opposed to Johnson & Johnson’s ‘Texas Two-Step’ Bankruptcy Ploy Urge Passage of Reforms Introduced by Warren, Durbin, Nadler, Blumenthal, and Maloney
WASHINGTON, July 29, 2021 / PRNewswire / – More than 30,000 cancer patients would retain their constitutional right to have juries decide whether or not to use talk in Johnson & Johnson (NYSE: JNJ) baby products as part of bankruptcy reforms proposed Wednesday by key Senate lawmakers to address their ovarian cancer and House of Representatives.
The 2021 Debt Release Prohibition Act would close controversial bankruptcy loopholes, including non-consensual third-party releases and the so-called “Texas Two-Step”. Recent media reports indicate that Johnson & Johnson – with a market cap greater than $ 400 billion – Consider bankruptcy to avoid paying claims and damages that would likely cost a fraction of that amount. In a quarterly earnings report released this week, J&J reported sales of $ 23.31 billion, an increase of 27 percent over the previous year, and cancels the annual sales forecast. at $ 94.6 billion.
“Many of us are shocked that Johnson & Johnson would consider abusing the bankruptcy process to avoid caring for the women and families who harmed them,” says Dean Berg, whose study in 2013 led to the first jury decision to establish a link between talcum powder and ovarian cancer. “Before J&J harmed us, we were loyal J&J customers. You have turned your back on us all. “
Dozens of studies published in peer-reviewed journals over the past 25 years have shown a statistically significant association between talc consumption and ovarian cancer and mesothelioma. Process documents show that the company was aware of the dangers as early as the 1960s.
The proposal for bankruptcy reform by Sen. Elizabeth Warren (D-Mass.), Sen. Richard Durbin (D-Fig.) And Sen. Richard Blumenthal (D-Conn.) In the Senate and Rep. Jerrold Nadler (DN.Y.) and Rep. Carolyn Maloney (DN.Y.) in the House of Representatives, would address a growing trend where a profitable company is able to quickly move legal liabilities and debts into a separate body. The subsidiary known as a “divisive merger” or “Texas Two-Step” is then re-established elsewhere and ultimately declared bankrupt. The threat of bankruptcy is used to intimidate individuals who file lawsuits and to lower the value of negotiated settlements.
The story goes on
“These conscientious and well-informed legislators recognize that it is reprehensible and intolerable to allow highly profitable companies to evade their responsibility to society,” says Andy Birchfield, Head of Mass Tort at Beasley Allen law firm who represents thousands of women diagnosed with ovarian cancer after exposure to Johnson & Johnson baby powder and other talc-based products. “The courts – not the federal bankruptcy system – are the right forum for settling disputes between perpetrators and the people they injured.”
The Debt Release Prohibition Act would prohibit bankruptcy judges from giving non-party companies non-amicable indemnity in the course of bankruptcy proceedings. This tactic enables companies to use bankruptcy as a shield against liability. The legislation is in line with other legislative proposals – known as the SACKLER Act – introduced by Rep. Maloney.
In addition, bankruptcy filings often introduce indefinite delays that freeze ongoing lawsuits in state and federal courts. Sen. Warren’s bill would limit the length of stay to just 90 days.
“These lawmakers should be applauded for recognizing the need to close the loopholes that allow powerful individuals and successful businesses to play blame on people’s lives,” says Michelle Parfitt, Co-Lead Counsel at Federal Talk MDL and Senior Partner at Ashcraft & Gerel law firm. “Whether it’s baby powder, medicine, or any other dangerous product, consumers need to be able to receive adequate compensation for any loss and injury suffered. Without these proposals, this principle of our legal system is at risk. “
About the Beasley Allen Law Office
Headquarters in Montgomery, Alabama, Beasley Allen consists of more than 70 lawyers and 200 assistants. One of the largest law firms in the country, Beasley Allen is a national leader in civil litigation with judgments and settlements of more than $ 26 billion. More information is available at www.beasleyallen.com.
About the law firm Ashcraft & Gerel
Washington, DCAshcraft & Gerel, LLP, based in 1953, was developed. The law firm’s goal is to help people who have been injured while on the job. This law firm has grown to become one of the largest and most well-known personal injury law firms in the United States since its inception
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SOURCE Beasley Allen Law Firm